Moody’s rates Suzano notes Ba2/Aa2.br

Moody's America Latina said it assigned a Ba2 global scale local currency rating and Aa2.br national scale rating to Suzano Papel e Celulose SA's proposed R$500 million four-year senior unsecured notas de credito a exportacao.

The outlook is positive.

Net proceeds will be used to fund forestry investments and for general corporate purposes.

Moody’s said the Ba2/Aa2.br ratings incorporate the company's position as a low-cost producer of bleached eucalyptus kraft pulp (BEKP) and paper, with leading stakes in the global BEKP market and Brazilian printing and writing paper and paperboard sectors.

The company benefits from a high level of vertical integration with substantial self-sufficiency in wood fiber and energy, in addition to the proximity of its pulp mills to its own forests and port facilities as well as the favorable location of its paper plants within Brazil's most industrialized region.

Furthermore, Moody’s said, its diversity toward pulp and paper translates into exposure to different market dynamics and contributes to strong operating margins even amid a lower growth outlook for the paper industry in Brazil.

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